Hotel Business Plan







Project: Hotel along Waiyaki way opposite Sigona Golf Club.

Client: ……………….. …………………


Location: Sigona town, near Kikuyu town.,36.664596&spn=0.024285,0.042272



Number of rooms= 300



MAY  13TH 2014



This is a project proposal for the construction of a high class hotel comprising of 200 No. rooms on a parcel of land situated at Sigona.

The project has been conceived, designed and will be implemented by .

The estimated development cost for the project is KES  1.6 Billion. USD 18 Million.





The project completion period shall take 24 months from ground breaking to hand over.





A4architect is a dynamic property consulting company specializing in providing a one-stop service for the management and development of a variety of property development projects. It provides its clients, who may be property owners, developers or tenants, with the expertise to guide a project through the complex development process from concept through to building completion.

Depending on the requirements of their client, A4architect can provide a full or partial consulting service. The company’s involvement can vary from sourcing suitable sites, arranging local authority approvals, managing the professional team or providing a complete project management service.

The principals behind the firm have several years experience in designing and managing to completion several projects of various natures .



The project comprises the construction of 300 No. hotel rooms each self-contained, and a restaurant for Sale at Sigona, in a 10 acre piece of land opposite Sigona golf club.








Cost Item Kshs USD %
Land 300,000,000.00 3,333,333.33 18.23375676
Preliminary 300,000.00 3,333.33 0.018233757
Construction 1,000,000,000.00 11,111,111.11 60.77918921
External Works 10,000,000.00 111,111.11 0.607791892
Contingency 15,000,000.00 166,666.67 0.911687838
Professional fees 140,000,000.00 1,555,555.56 8.509086489
Project Management fees 10,000,000.00 111,111.11 0.607791892
Marketing 10,000,000.00 111,111.11 0.607791892
Restaurant 0.00 0.00 0
Financial Charges 160,000,000.00 1,777,777.78 9.724670273
Total 1,645,300,000.00 18,281,111.11 100







1.11 Projected sale price per hotel room unit KES 8,000,000 for 200 rooms .

This price is scheduled to increase as demand for the rooms rises.


1.12 Overall sales revenue= USD 17,700,000.00






Daily rates at worst case scenario=kes 9,000  USD 100.

Occupancy rate =80%

Management fees=20% of revenue.


Total Monthly collection per room =KES 2,400

Total monthly collection for 200 rooms = USD 480000







Sigona is situated 15 minutes drive[25 km] from Nairobi’s Central Business District along the international Nairobi to Uganda highway. The site is served by the Southern Bypass, which is an International road linking Mombasa to Rwanda and Uganda.


The area is connected to the mains water supply from the Kiambu Municipal Council and also has easily connected electricity supply from KPLC.


The immediate locality consists of subdivisions each measuring an eighth of an acre. Developments in this area are predominantly single family residences. The occupancy is predominantly homeowners. With the new construction of the bypass, developments around this area are rapidly transforming into high rise commercial nature.

The majority of the buildings here are of reasonably well constructed and maintained.




Given the proximity of the site to Nairobi’s CBD, Southern Bypass , Thogoto town, Kikuyu town, Karen, Dagoretti market, the site would realize good returns on a multi level hotel development.


Property appreciation is expected to be in the range of 20% p.a.



The planned development intends to maximize this potential by creating accommodation that is spacious whilst at the same time making optimum use of the vertical space available.

At the moment, the closest hotels nearby are located at Kikuyu town,5 km away.


Wida highway motel, located 8km away at Sigona, charges kes 4,000 per night.



The planned development would meet an existing need since the site is located along the soon to be completed busy highway from Mombasa, Tanzania, Zambia and Southern Africa to Uganda, Rwanda and Central Africa.



In the locality of the planned development, there exist several hotels in Kikuyu town, 3 km away.


Wida Highway motel, 6 km away, is the closest competition.



A4architect will in this provide the clients with a full design/build service. This shall include


1. Design and specification

Architectural, structural, mechanical and electrical drawings shall be prepared and necessary approvals sought.

During the various stages of the design, the client shall be kept fully informed and client approval sought prior to proceeding to the next stage. The engineering design shall be done by registered engineers under the guidance of A4architect. Detailed specifications shall be developed with close consultation with the client.


2. Project estimates

Subsequent to completion of the design, a Quantity Surveying firm under the guidance of A4architect shall undertake construction cost estimates for the project.


3. Preparation of tender and contract documents

After final design has been done and client approval obtained, tender documents shall be drawn up for the general and specialist contractors. The specialist contract documents shall be prepared with guidance from the relevant engineers.


4. Tendering

Selected contractors shall be invited to tender for the various work packages. We shall then analyze the tenders returned and forward our recommendation to the client.


5. Contract documentation

With the contractors have been selected, we shall draw up the required contract documents and enter into contract with the contractors on the client’s behalf.


6. Project management

Subsequent to the contracts being signed and mobilization to the site, we shall provide superintendence and project management. This will entail ensuring that the project is brought in on time and under budget by constant monitoring of operations on site and remedying any issues that may prevent timely completion or cause expenditure to exceed the budget.


7. Contract administration

We shall handle all matters relating to the various contracts including but not limited to stage payments, performance bonds, extensions of time and relationships between the various trades involved in the project’s execution.


8. Sales and marketing

In conjunction with an estate agency approved by the client, we have produced a presentation package to be used in the marketing of the Motel.






a) Design to Tender

The design to tender process will take a total of 1 month. This will include commissioning of all engineering design, preparation of bills of quantities and obtaining of all relevant approvals for the development.

b) Construction

Construction of the entire project is estimated to take a maximum of 24 months.




Prepared By

Francis Gichuhi Kamau                     B.Arch. U.o.N  M.A.A.K[A] Registered Architect

+254 721 410684




Arch. Francis Gichuhi Kamau. (337 Posts)

Architect Francis Gichuhi . B.Arch. University of Nairobi. Registered Architect, Kenya. Member, Architectural Association of Kenya. Contacts. email Telephone +254721410684


  1 comment for “Hotel Business Plan

  1. Ronny
    November 11, 2017 at 11:00 am

    Hey. Could you kindly send me the planning regulations for hospitality facilities such as hotels? I would highly appreciated it.


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